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What is a National Insurance number?

A National Insurance number is the unique reference number used by HM Revenue & Customs and the Department for Work and Pensions to identify an individual's National Insurance contribution record.

It ensures that contributions paid by, and credited to, an individual are put on the right record so that whenever a claim to benefit is made, the correct amount can be paid.


What does National Insurance have to do with Tax?

National Insurance is a payment deducted from wages to fund social services like healthcare, social security benefits and state pensions. Everybody has to have a number; however, you can only apply once here in the UK. How to apply depends on your immigration status:


Work Permit Holders:

  • Call the Department for Work and Pensions (DWP) to request an application form
  • Complete the application in conjunction with your school
  • Send the completed form and your supporting documents back to DWP within 28 days of receipt
  • You need to provide your passport, proof of address, a letter from your employer or agency and a payslip.

Working Holiday Visas/EU Passport Holders:

  • Make an appointment for an "evidence of identity" interview at the nearest Job Centre.
  • To make your appointment call 0845 6000643.
  • Job Centre is a government office which can be found in most large towns or city districts.
  • You will need to take a number of supporting documents to your interview.

When you call to arrange your interview they will tell you what identification and which documents you will need to take, but as a rough guide they need to know -

  • Who you are (passport and any other photo ID)
  • Where you live (proof of address)
  • What you do (offer letter/contract from school)
  • If you are eligible to work in the UK (working holiday visa)

They will also want to know of any other previous visits to the UK, so you will need dates of your previous visit(s) if applicable.


National Insurance Rates

The following amounts apply for the 2006-2007 tax year:

If you're employed

  • if you earn above £97 a week (the 'earnings threshold') and up to £645 per week you pay 11 per cent of this amount as 'Class 1' NICs
  • you also pay one per cent of earnings above £645 a week as Class 1 NICs
  • you will pay a lower amount as an employee if you are a member of your employer's contracted out pension scheme

Rates and Allowances - National Insurance Contributions
www.hmrc.gov.uk/rates/nic.htm

National Insurance Registration Helpline 0845 915 7006



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